MGT 2010 Chapter 11

Under what conditions is the current organizational structure of Dropbox most likely to be effective?

When there is a single business mission

Zappos uses a human resource strategy strategy. Zappos, an online retailer, prides itself on its excellence in customer service. Its leadership believes that a focus on human resources is key to achieving a competitive advantage in service quality. Its corporate-level strategy is that of the single-product strategy. If you were a consultant hired to advise Zappos, you would suggest that it have ________ structure.

functional

Professor Hackman was commenting on the effect of a deviant in a long-standing work team. Step back and consider whether a deviant might have a similar effect in the team organization, which does not have long-term or permanent teams. When Hackman refers to "the tendency to want too much homogeneity," he is referring to __________ , a potential disadvantage of teams caused by pressure to ___________

groupthink, agree on solutions

Dell's Professional Development program allows all employees to take courses that align with Dell's business goals and strategy. Dell can be described as a _______ organization

learning

Mega Consulting encourages its employees to attend personal and career enrichment classes, which are offered during lunchtime and right after work. At a recent workshop, participants learned basic spreadsheet skills. At another session, a financial planning expert provided employees with strategies for managing their 401(k) savings. Mega Consulting is an example of a _______ organization.

learning

As an organization becomes more mechanistic, its chain of command becomes ______.

longer

All employees on the shop floor at Alfredo's Sausage are responsible for creating the best-quality product possible. They identify, investigate, and address problems. They also are responsible for selecting, training, evaluating, and, if necessary, terminating the employees who work with them. There are few layers of management. Alfredo's Sausage is an example of a _____ organization

team

Which of the following is the best example of a company using a bureaucratic model of organization design?

Creativity is terrific, but sometimes creativity can go too far. Izzy's Ice Cream is known for its unusual flavors, but last week, the employees came up with something they called Mud. Sure, it was just chocolate ice cream, but Izzy had to tell his workers, "No naming ice cream after dirt or anything else people would not want to eat!"

Which of the following reasons would you give to support your recommendation to Zappos?

The single-product strategy can be simply organized by function.

In Bolin and Härenstam's study, the factor identified as affecting an organization's structure is the:

Type of industry

The XYZ Corporation has a distinct division of labor, consistent rules, and a clear hierarchy. Managers maintain distance between themselves and subordinates, and promotions are awarded based on technical expertise. These are all hallmarks of

a bureaucracy

Departmental heads must ensure that jobs are designed to meet the needs of the department, but organization design must also ensure that. ______ properly distributed among jobs. Departmental leadership is an example of this principle.

authority is

CreativityUnlimited provides graphic design and branding needs for its clients. Every client is unique. While CreativityUnlimited has traditionally been organized by functional departments, the COO believes it will be more effective for everyone assigned to the same client to be grouped together. This shift will utilize one of the basic building blocks of organization design,

distributing authority among jobs

A ________ may also be referred to as the U-form (unitary) approach to departmentalization.

functional design

The H-form design can best be described as a _________ bureaucratic design

holding company

It is also true that, as an organization becomes more organic, its chain of command becomes ________.

shorter

ModernShed is a company that provides custom-designed shed kits. The company has no employees. Instead, functions are performed by contract workers on an as-needed basis. ModernShed can be classified as a _______ organization.

virtual

In structuring the design of organizations, managers must recognize that the best design depends on many variables. Which of the following statements supports this fact?

Organizations with a prospector strategy are likely to be flatter than organizations with a reactor strategy.

Which of the following is the best example of a company using a bureaucratic model of organization design?

Lifeguards may seem to have an easy life, but the work is really very difficult. All lifeguards receive specialized training and are ready to jump into action if an emergency arises. Professional lifeguards use a paramilitary structure (chief, captain, lieutenant, sergeant, and two levels of lifeguards), so there is only one person giving orders in an emergency.

Which of the following reasons would you give to support your recommendation to Cisco Systems? Check all that apply.

Shorter chains of command and horizontal communication allow for increased innovation. Decentralized decision making allows for greater flexibility in meeting customer needs.

What are the disadvantages of Dropbox's current organizational structure?

The functional structure may not be sufficient to meet the needs of multiple office locations.

Which of the following statements best summarizes why structuring an organization is such a challenging objective?

The optimal design depends upon many factors.

When employees report to both a product and a functional manager, they are most likely working in a company with a

matrix design

One difficulty in comparing Bolin and Härenstam's research with Burns and Stalker's earlier study is that Bolin and Härenstam:

Focused on industries, not the turbulence or stability of the environment

Leadership process includes no perceived confidence and trust.

system 1

Motivational processes tap physical and economic motives through the use of fear and sanctions.

system 1

Both superiors and subordinates are able to affect goals, methods, and activities.

system 2

Communication flows freely throughout the organization.

system 2

Decision process occurs at all levels and it is primarily decentralized.

system 2

Goal-setting is decentralized and encourages group participation.

system 2

Performance goals are high and managers are committed to providing employees with necessary resources.

system 2

Subordinates feel free to discuss job problems with superiors.

system 2

The U-form of organization design is organized by

functions

Communication flows downward and information may be viewed with suspicion by subordinates.

system 1

Control is centralized and focuses on blame for mistakes.

system 1

Organizations that are committed to providing employee learning and development, but do not have sufficient demand to justify a dedicated in-house learning center _______

can outsource these services

As a result of this structure, which of the following are you likely to observe? Check all that apply.

An emphasis on horizontal communication, which facilitates rapid decision making The company being particularly effective in an environment that demands flexibility Decentralized decision making, with responsibility pushed to lower levels

Which of the following reasons would you give to support your recommendation to Uber?

Cost leadership strategies require strong organizational efficiencies. The functional design is the most efficient, because functions are not duplicated across divisions.

As a result of this structure, which of the following are you likely to observe? Check all that apply.

Employees with greater job skills and knowledge A company committed to continuous improvement Employees finding creative solutions to job-related challenges

In Burns and Stalker's research, the factor identified as affecting an organization's structure is the:

Environment

Which of the following reasons would you give to support your recommendation to Oriental Trading Company? Check all that apply.

Functional structures create highly trained, specialized employees who are extremely efficient at what they do. Centralized decision making allows the organization to place tighter controls on the way work is done and, in the process, achieve economies of scale.

A principle of organization design is that organization design facilitates the

implementation of strategies

Goal-setting is centralized at the top of the organization.

system 1

Decision making is decentralized.

system 2

QRT Software creates and distributes inventory-control software. The heart of QRT Software is a small group of product managers who work with a number of external companies. One company develops the code, another is responsible for marketing, a third for quality control, and a fourth for distribution. QRT Software is an example of a _______ organization

virtual

The fashion industry follows a predictable cycle of bringing product to market season after season, and the demand for products is predictable. Major competitors are established, as are the traditional distribution options. How would you describe the environment in which Melissa operates?

stable

Grendene has been in operation for several decades, has strong market penetration, and sells shoes in fairly predictable quantities. Therefore, Grendene is in which stage of the organizational life cycle?

maturity

Uber uses a cost leadership strategy strategy. Uber, an online transportation network, facilitates matching drivers with passengers who need transportation. It emphasizes efficiency and control to keep costs low. If you were a consultant hired to advise Uber, you would suggest that it have _________ structure.

functional

Dropbox's organizational structure includes marketing, legal, product, customer success, and human resources departments. This _______ structure is appropriate because

functional, Dropbox offers only one product line: cloud storage and related services: cloud storage

Which of the following are advantages of bureaucratic organizations? Check all that apply.

Promotions typically are based on expertise rather than favoritism. Standard operating procedures provide clear instructions.

Which of the following is the best example of a company using a bureaucratic model of organization design?

Safety is a key concern in most industries, but it is especially important at BigBoom Fireworks Factory. Employees must use carefully standardized procedures for packing fireworks to prevent unwanted explosions.

Which of the following are disadvantages of bureaucratic organizations? Check all that apply.

Social processes may not receive adequate attention The division of labor may limit employees from gaining broad skills. Changing rules may be difficult.

As a result of this structure, which of the following are you likely to observe? Check all that apply.

The organization focusing on its core competency A very flexible company Extensive use of outsourcing to achieve the company's needs and goals

Professor Hackman was commenting on the effect of a deviant in a long-standing work team. Step back and consider whether a deviant might have a similar effect in the team organization, which does not have long-term or permanent teams. According to Hackman, a deviant may help a group consider ________ , but if the deviant has a strong personality and limits the input of others, the problem of _________ may arise.

alternative solutions, minority domination

Cisco Systems uses a differentiation strategy. They offer their customers the latest in routers and switches. Cisco products may cost a bit more, but customers believe they are worth every penny. If you were a consultant hired to advise Cisco Systems, you would suggest that it have ______ structure.

an organic

A benefit of using a ________ structure with departments that specialize in different types of work is that Dropbox can

functional, Minimize the inefficiency of duplicated efforts across multiple locations

Professor Hackman was commenting on the effect of a deviant in a long-standing work team. Step back and consider whether a deviant might have a similar effect in the team organization, which does not have long-term or permanent teams. Hackman suggests that a deviant can improve a group's innovation by opening up discussion of new ideas. This corresponds to a reduction in ___________ , which is desirable, but can also result in meetings that are __________ .

groupthink, lengthy and unproductive

Oriental Trading Company uses a cost leadership strategy. It has a "110% Lowest Price Guarantee," which says that if a customer can provide an advertisement with a lower price from another company, the Oriental Trading Company will refund 110% of the difference in price. If you were a consultant hired to advise Oriental Trading Company, you would suggest that it have ________ structure.

a mechanistic

Imagine that you are a consultant and have been asked to lead the redesign of a large corporation. You will need to collect and consider a lot of information about the organization's strategic direction and how the organization works now. Then you'll need to consider how best to combine the building blocks of organizations to create an effective structure for this company. Before beginning to work through the details of this big project, you decide to reflect on what you know about organization design in general. What will be true of your new design for this organization?

It will eventually become less effective, and managers will need to change it again.